Should your client buy first or sell first?

If the client BUYS first:

1. He may have the satisfaction and security of knowing where he is moving to … but only perhaps!

2. The smart thing to do is to include a clause in the offer, stipulation that the purchase is “subject to the sale of the buyer’s house by a certain date ( such as in 60 days).

3. If the buyer needs financing, there would also have to be an appropriate clause to that effect.

4. Because of the “subject to” clauses, the buyer will have reduced bargaining power (in comparison with a subject-free cash offer). The seller will be less inclined to negotiate on his asking price.

5. Then there is the uncertainty of whether the buyer’s house will sell during that limited time period. To avoid tying up his principal’s house needlessly, the listing broker will insist on inserting an escape clause: “The seller’s acceptance of this offer is subject to him being able to continue to market his house during the next 60 days. If another acceptable offer should materialize during those 60 days, then the seller will give the buyer 24 hours to remove all subject clauses and make this a firm and binding contract. Failure to do so will render this contract null and void and the seller will be free to accept the other offer.”

6. The lending institution that will grant the new mortgage may not five a firm commitment until the buyer’s house is sold. Besides the uncertainty of how much new financing the buyer will need, the problem may be the buyer’s inability to carry two houses.

7. Next, the buyer will find himself under pressure to sell: he has a limited time to sell. Precious days will be wasted on getting the show on the road: processing, publishing, and circulating the listing. It may be on the computer without a picture. The deadline for the next MLS catalogue might be missed. The MLS tour could be fully booked for the next few weeks.

8. Selling in a buyer’s market often compounds additional problems. Overoptimistic/unrealistic sellers tend to overestimate their home’s market value and underestimate the length of time that is required to sell their house.

9. The buyer will not have the luxury of being able to hold out for a good price; in fact, he may be forced to progressively reduce his price in order to attract an offer. Everybody has seen the ads, “Owner has bought and must sell.” Some ruthless buyers may decide to wait and see how low the unfortunate owner is willing/able/forced to go.

10. To add insult to injury, the buyer may be served during the 60 days he has to sell with the 24 hour escape clause before his old house is sold. As for most people, it is too risky to borrow bridge financing and to carry two houses. They will have no choice but to step aside and lose out on the home of choice. If somebody buys first, chances are that he will buy high (little bargaining power) and sell low (due to time pressure) and /or he may lose out anyway on the house.

If the client SELLS first:

1. The preliminaries of putting the house on the market can be taken care of without wasting time.

2. While their house is for sale, there is nothing to stop them with familiarizing themselves with what is on the market; should they find a suitable home before they have a firm offer on the old house, the “subject to sale” method is available.

3. If they get an offer on their old house before they have found something they like, then they have the luxury of being able to drive a hard bargain ( to make only small concessions on their asking price)

4. If their buyers are renters, then a long possession date should be no problem. A long possession date could be a bargaining factor and should be attempted on all offers.

5. After the buyers have received a firm offer with a substantial deposit ( for their peace of mind ) they can get their mortgage approved and,

6. Drive a hard bargain on their next purchase. The owner of the house they want to buy will view them as cash buyers and will be more disposed to making price concessions.

So, if you sell first and buy later, there is nothing to stop you from looking while marketing your house and if you play your cards right, you will sell high and buy low.

Regrettably, there is no universally perfect solution to this dilemma. Each client will have to weigh the risks of having to move before the next place is available: if they bunk with friends or relatives or rent temporary quarters, there is the expense of having to move twice, storing the furniture somewhere and possibly having to put a pet in a kennel. Worse still, where will the children go to school? For whatever it is worth, all of these problems are surmountable and merely inconveniences in comparison with the financial burden and fiasco of having to carry two houses for an indeterminate period of time.

Excerpt reprinted with permission.
First published in February 2004 edition of REM by Albert R. Teichner

Remembrance Day – November 11, 2008

remembranceflower.jpgA Day of Remembrance – Tuesday November 11, 2008

How Do We Remember?

On November 11, especially, but also throughout the year, we have the opportunity to remember the efforts of these special Canadians. In remembering, we pay homage to those who respond to their country’s needs. On November 11, we pause for two minutes of silent tribute, and we attend commemorative ceremonies in memory of our war dead.

Following the First World War a French woman, Madame E. Guérin, suggested to British Field-Marshall Earl Haig that women and children in devastated areas of France could produce poppies for sale to support wounded Veterans. The first of these poppies were distributed in Canada in November of 1921, and the tradition has continued ever since, both here and in many parts of the world.

Why poppies are worn as the symbol of remembrance, a reminder of the blood-red flower that still grows on the former battlefields of France and Belgium. During the terrible bloodshed of the second Battle of Ypres in the spring of 1915, Lieutenant-Colonel John McCrae, a doctor serving with the Royal Canadian Army Medical Corps, wrote of these flowers which lived on among the graves of dead soldiers:

In Flanders Fields the poppies blow
Between the crosses, row on row,
That mark our place; and in the sky
The larks, still bravely singing, fly
Scarce heard amid the guns below.

The flowers and the larks serve as reminders of nature’s ability to withstand the destructive elements of war by men, a symbol of hope in a period of human despair. In Canada, traditionally the poppies which we wear were made by disabled Veterans. They are reminders of those who died while fighting for peace: we wear them as reminders of the horrors of conflict and the preciousness of the peace they fought hard to achieve.

The two minutes of silence provide another significant way of remembering wartime while thinking of peace. Two minutes are scarcely enough time for thought and reflection. As we pause and bow our heads, we remember those brave men and women who courageously volunteered for the cause of freedom and peace.

For those who lived through these wars, remembering means thinking of comrades. It evokes memories of men and women who never returned home. Those born after the wars might picture the youthful soldiers who eagerly joined up from high schools, businesses and farms across the country, only to meet death while fighting against the enemy. They may imagine the anguish of a man leaving a new wife, a young family, an elderly mother. The important thing for all of us to remember is that they fought to preserve a way of life, Canadian values, and the freedom we enjoy today and often take for granted. Remember that the silence is to honour their sacrifice and memory.

There are memorials to commemorate the service of Canadian troops in Canada and overseas. The National War Memorial in Ottawa was originally designed to recognize those who served in the First World War. It has been rededicated to symbolize the sacrifice made by Canadians in the Second World War, in Korea, and in subsequent peacekeeping missions. The National War Memorial symbolizes the unstinting and courageous way Canadians give their service when values they believe in are threatened. Advancing together through a large archway are figures representing the hundreds of thousands of Canadians who have answered the call to serve; at the top of the arch are two figures, emblems of peace and freedom.

The Tomb of the Unknown Soldier is located next to the National War Memorial and contains the remains of an unknown Canadian First World War soldier who was exhumed from a cemetery near Vimy Ridge. The Tomb and its Unknown Soldier represents all Canadians, whether they be navy, army, air force or merchant marine, who died or may die for their country in all conflicts – past, present, and future.

The Books of Remembrance which lie in the Memorial Chamber of the Peace Tower are another record of the wars. In addition, most cities and towns across the country have dedicated a monument, a building, or a room to their native sons and daughters who gave their lives. These commemorative locations are an enduring record of the losses suffered by communities as Canadians went forward to fight for what they believed was right.

One day every year, we pay special homage to those who died in service to their country. We remember these brave men and women for their courage and their devotion to ideals. We wear poppies, attend ceremonies, and visit memorials. For one brief moment of our life, we remember why we must work for peace every day of the year.

The Poppy, the Symbol of Remembrance Day

The adoption of the poppy as a symbol of remembrance has international origins. The first person to use it this way was Moina Michael, a member of the staff of the American Overseas YMCA in the last year of the war. Michael read McCrae’s poem and was so moved that she composed one of her own in response. She recalled later: “In a high moment of white resolve, I pledged to keep the faith and always to wear a red poppy of Flanders Fields as a sign of remembrance and the emblem of ‘keeping the faith with all who died.’”

Consequently, she led a successful campaign to have the American Legion recognize the poppy as the official symbol of remembrance in April 1920. At the same time, Madame Anne Guerin, of France, inspired both by McCrae’s poem and by Moina Michael’s example, also became a vigorous advocate of the poppy as the symbol of remembrance for war dead. Her own organization, the American and French Children’s League, sold cloth copies of the flower to help raise money to re-establish war-devastated areas in Europe.

In 1921, Guerin travelled to Britain and Canada on behalf of the poppy and convinced both the recently formed British Legion and the Canadian Great War Veterans Association (a predecessor of the Canadian Legion) to adopt the poppy as their symbol of remembrance as well. The first ‘Poppy Day’ in both countries occurred on 11 November 1921. The Returned Soldiers League in Australia adopted the poppy as its symbol of remembrance the same year.

For the first year, these artificial poppies were bought from Guerin’s organization in France. By 1922, however, the various countries had started manufacturing them at home. In Canada, they were made by Vetcraft shops, run by the Department of Soldiers Civil Re-establishment and staffed by disabled soldiers. After its formation in 1925, the Canadian Legion (known as the Royal Canadian Legion since 1959) has run the poppy campaign in Canada.

An early edition of the Legion’s magazine, The Legionary, explained the significance of buying poppies made by Vetcraft, as opposed to commercially available copies, as follows: “The disabled veterans in Vetcraft and Red Cross workshops are creating true memorials, while a poppy replica produced under ordinary commercial competitive conditions is nothing more nor less than an artificial flower.”

The artificial poppy continues to flourish as the symbol of remembrance in the week leading up to the official commemorations on November 11. Today, millions of Canadians wear the bright red emblem to remember and honour the many thousands of their fellow Canadians who have died in war.

Remembrance Day Activities at the Canadian War Museum:

http://www.warmuseum.ca

Under Education, just click on Remembrance Day Tool Kit link.

Current Mortgate Rates for St. Catharines/Niagara area

Rate
Term
5-Year Fixed 5.70%
3-Year VRM 5.00% Fully open term!

Poem of the Week
In Flanders fields the poppies blow
Between the crosses, row on row
That mark our place; and in the sky
The larks, still bravely singing, fly
Scarce heard amid the guns below.

We are the Dead. Short days ago
We lived, felt dawn, saw sunset glow,
Loved and were loved, and now we lie
In Flanders fields.

Take up our quarrel with the foe:
To you from failing hands we throw
The torch; be yours to hold it high.
If ye break faith with us who die
We shall not sleep, though poppies grow
In Flanders fields. 

Have a great week!

paulcroteau.jpg

Paul Croteau
Mortgage Specialist
BMO Bank of Montreal
31 King Street
St. Catharines, ON
ph: (905) 321-3230
fx: (905) 641-7854
Paul.Croteau@bmo.com

Home Maintenance Tips for Fall

Protect Your Home — and Your Investment!

Your house is more than the place where you live. It’s your home, and your most important investment. Carrying out a regular program of maintenance and repairs can help you protect that investment for as long as you live in your home, and help keep your family safe and sound in every season.

This fall, for example, Canada Mortgage and Housing Corporation has a variety of simple tasks you can perform to avoid the most common — and costly — problems before they occur, in just a few minutes a week. For example:

* Check and clean or replace your furnace filters on a monthly basis during the heating season.

* Have your furnace or heating system serviced by a qualified service company (every two years for a gas furnace and every year for an oil furnace).

* Bleed air from the hot water radiators, and turn the gas furnace pilot light on.

* Vacuum electric baseboard heaters to remove dust, removing the grilles on forced air systems and vacuum inside the ducts.

* If the heat recovery ventilator has been shut off for the summer, clean filters and the core, and pour water down the condensate drain to test it.

* Have well water tested for quality.

* Check the sump pump and line to ensure proper operation, and that there are no line obstructions or visible leaks.

* If you have a septic tank, measure the sludge and scum to determine if it needs to be emptied before spring. Tanks should be pumped out at least once every three years.

* Replace window screens with storm windows, and ensure all windows, doors and skylights shut tightly, including the door between your house and garage.

* Ensure that the ground around your home slopes away from the foundation wall to prevent water from draining into the basement.

* Clean leaves from eavestroughs and downspouts to ensure proper drainage from the roof, and check chimneys for nests or other obstructions.

* Cover the outside of air conditioners, and drain and store outdoor hoses. Close the valve to outdoor hose connection, and drain the faucet (unless it is frost proof).

* Winterize landscaping by storing outdoor furniture, preparing gardens and, if necessary, protecting young trees or bushes for winter.

For more information or a free copy of the Ask CMHC About Your Home’s Possibilities catalogue, “About Your House” Home Maintenance Schedule or any of the other “About Your House” series of fast-and-factual guides covering virtually every facet of owning, maintaining or renovating your home, visit our Web site at www.cmhc.ca or call CMHC at 1-800-668-2642. Canada Mortgage and Housing Corporation (CMHC) is Canada’s national housing agency and a source of objective, reliable housing expertise.

For story ideas or to access CMHC experts or expertise, contact CMHC Media Relations — National Office at: 613-748-4684 or by e-mail: media@cmhc.ca.

Source: Canada Mortgage and Housing Corporation (CMHC)

Property Values Going Up

Article in the St. Catharines Standard last week that I posted on my Blog as well regarding Property Values. Property Values going up means an increase in Property Taxes, see the link below for more information and the complete article.

Property Taxes

T.

Timothy Salisbury
Broker
The Salisbury Team
Royal LePage Niagara Real Estate Centre Inc., Brokerage
Toll Free – 1-800-467-8498
Office – 905-937-6000
View My Website and my Blog at www.timothysalisbury.com
P.S. The best compliment we can ever receive, is when you tell others about us.

Current Mortgate Rates for St. Catharines/Niagara area

Rate
Term
5-Year Fixed 5.70%
3-Year VRM 5.25% Fully open term!

Quote of the Week
“Defeat is not the worst of failures. Not to have tried is the true failure.”
George Edward Woodberry

Have a great week!paulcroteau.jpg

Paul Croteau
Mortgage Specialist
BMO Bank of Montreal
31 King Street
St. Catharines, ON
ph: (905) 321-3230
fx: (905) 641-7854
Paul.Croteau@bmo.com